Ashimori Industry Co., Ltd. Business Report FY ended Mar. 2018
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 56,714 | 50,331 | 12.7 | - |
| Operating income | 1,879 | 1,510 | 24.4 | - |
| Ordinary income | 1,946 | 1,362 | 42.9 | - |
| Net income attributable to owners of the parent | 457 | 1,019 | (55.1) | - |
| Automotive Safety Systems | ||||
| Sales | 39,991 | 36,006 | 11.1 | -Sales of seatbelts fell in Korea and China, but were strong in Thailand and India. -Sales of airbags were strong in Japan due to increased sales of vehicles to which the Company delivers airbags. The Company launched commercial production of airbags as a result of winning new product orders from local Korean OEMs. -Sales of interior products and others were sluggish in Japan and Thailand, which resulted in a decrease in sales. |
| Operating income | 1,165 | 1,172 | (0.6) | -Profit margin fell in China due to lower product selling prices and profit fell in Mexico, where production volumes of vehicles the Company delivers products to decreased. |
Global Business Activities
-The Japan Bank for International Corporation (JBIC) has signed an agreement to jointly loan up to MXN 213.5 million (JPY 1,276 million) with private financial institutions to a Mexican subsidiary of Ashimori Industry, Co., Ltd., a seat belt and airbag maker. The loan will be used for the construction of the subsidiary's second plant in Mexico and for the purchase of production equipment. The subsidiary, Ashimori Industria de Mexico, S.A. de C.V., was established in 2012 to supply automotive seat belts, airbags, and interior parts to the U.S. and Mexico. It opened its second plant in July 2017 to expand its markets in these regions, and entered into the loan agreement in order to refinance investment in the plant and equipment. (From an article in the Nikkan Jidosha Shimbun on November 28, 2017)
Mid-term Management Strategy
| Setting up global production and sales operations |
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| Develop new-generation products | -Developing restraint devices that comply with new evaluation standards based on collaboration with OEMs, i.e., devices that can respond to oblique impacts and comply with new evaluation standards (BriC) for head-injury values. | ||
Outlook for FY ending Mar. 31, 2019 |
(in million JPY) |
| FY ending Mar. 31, 2019 (Forecast) |
FY ended Mar. 31, 2018 (Actual Results) |
Rate of Change (%) |
|
| Overall | |||
| Sales | 61,500 | 56,714 | 8.4 |
| Operating income | 2,500 | 1,879 | 33.0 |
| Ordinary income | 2,400 | 1,946 | 23.3 |
| Net income attributable to owners of the parent | 1,500 | 457 | 228.0 |
| Automotive Safety Systems | |||
| Sales | 43,100 | 39,991 | 7.8 |
| Operating income | 1,600 | 1,165 | 37.3 |
-The Company forecasts that in the fiscal year ending in March 2019 revenue and income will increase year-over-year, to the point where sales, operating income, ordinary profit, and new profit will all set new record highs.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 1,059 | 868 | 939 |
| -Automotive Safety Systems | 449 | 434 | 471 |
R&D Activities
Seatbelts
-The Company developed and improved the reliability of new devices that comply with government regulations in every country and which pass assessment tests.
-The Company developed and commercialized devices that are designed for production worldwide.
Airbags
-The Company developed and improved the reliability of new modules for new collisions mode.
-The Company is developing and commercializing products that can be manufactured worldwide.
Interior products
-The Company expanded its product range of shades and tonneau covers, and expanded the types of cargo-nets it can supply. It also developed highly functional products and new materials; in addition to improving designs.
-Outside Japan, the Company is commercializing products, increasing the operations and number of customers.
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 3,803 | 2,691 | 1,800 |
| -Automotive Safety Systems | 3,237 | 2,287 | 1,568 |
Planned Capital Investments |
(As of Mar. 31, 2018) |
| Name of Company/Plant (Location) |
Purpose | Planned investment (in million JPY) |
Starting Month | Completing Month | Capacity increase on completion |
| The Company's Osaka Plant (Osaka, Japan) |
To rationalize production facilities for automotive safety systems and high performance products | 4,705 | Apr. 2017 | Mar. 2019 | Practically none as this is to improve quality |
| Ashimori Industry Yamaguchi Co., Ltd. (Yamaguchi, Japan) | To enhance production facilities for automotive safety systems | 1,900 | Oct. 2017 | Aug. 2018 | - |
| Ashimori Industria de Mexico, S.A. de C.V. (Guanajuato, Mexico) |
To enhance production facilities for automotive safety systems | 1,300 | Jul. 2016 | Feb. 2018 | - |